Large commodity index funds, known as managed money, continued to sell live cattle futures in the week ended Tuesday as cattle owners reduced their net short positions.
The information came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report on Friday.
FUNDS LIQUIDATE LONGS
As of Tuesday, managed money had a collective net long live cattle position of 22,233 contracts, down 4,656, or 17.3%, from 26,889 a week earlier. It was their smallest net long position since July 19, 2022, when it was 13,823 contracts.
At the same time, cattle owners, commonly referred to as commercial traders, had a total net short live cattle position of 88,736 contracts, down 1,039, or 1.16%, from 89,775 a week earlier. It was their smallest net short position since July 19, 2022, when it was 82,135 contracts.
The CFTC said managed money arrived at their new cattle position by liquidating 991 long positions, adding 3,665 short positions and putting on 1,040 spread positions. This left them holding 16.1% of total long open interest, 7.7% of total short open interest and 17.3% of total spread open interest.
Commercials got to where they were by liquidating 2,219 long positions and covering 3,258 short positions, leaving them with 17.3% of total long open interest and 50.7% of total short open interest.
The CME Group said live cattle open interest Tuesday totaled 265,889 contracts, up 2,496, or 0.95%, from 263,393 a week earlier.
CME data also showed that the most-active Feb contract fell in value during the CFTC-reporting week to $168.60 per cwt from $168.97. In between, it set a contract low of $162.40.
FUNDS COVER SOME LONG POSITIONS
Tuesday, managed money had a collective net short position of 149,655 contracts, down 7,173, or 4.57%, from 156,828 a week earlier.
Commercial traders, Tuesday, had a total net short position of 59,039 contracts, up 5,303, or 9.87%, from 53,736 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 6,282 long positions, covering 13,455 short positions and unwinding 2,985 spread positions.
Commercials got to where they were by liquidating 1,589 long positions and adding 3,714 short positions, leaving them with 29.9% of total long open interest and 34.6% of total short positions.
The CME Group said corn open interest Tuesday totaled 1.251 million contracts, down 4,600, or 0.37%, from 1.255 million a week earlier.
CME data also showed that the most-active Mar contract declined in value during the CFTC-reporting week to settle Tuesday at $4.85 ¼ a bushel, compared with $4.90 ½ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $165.82 per cwt to $173.08, compared with the previous week’s range of $172.57 to $180.00 per cwt. FOB dressed steers, and heifers went for $268.50 per cwt to $275.17, compared with $274.30 to $279.24.
The USDA choice cutout Friday was down $0.68 per cwt at $291.64 while select was up $2.56 at $260.82. The choice/select spread narrowed to $30.82 from $34.06 with 92 loads of fabricated product and 42 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.25 to $1.38 a bushel over the Mar corn contract, which settled at $4.83 a bushel, up $0.03 3/4.
No delivery intentions were posted for Dec live cattle Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $219.07 per cwt, up $1.23. This compares with Friday’s Jan contract settlement of $220.90, up $1.55.